[jeff]

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Post by Another71.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Gabe]

I always miss this one……..A?

CPA, CFE
CISA- Experience will be completed by August 2016

[WANNABE_CPA]

@gabe, A is correct. I never knew the big list of Taxes imposed on Private foundation until this question.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[BEACPA]

During the current year, Nale Corp. received dividends of $1,000 from a 10%-owned taxable domestic corporation. When Nale computes the maximum allowable deduction for contributions in its current year return, the amount of dividends to be included in the computation of taxable income is:

a. $1,000

b. $300

c. $0

d. $200

I selected choice b for 300, because of the 70% dividends received deduction. I'd appreciate if anyone could correct my error. Thank you in advance!

Explanation

Choice “a” is correct.

Rule: The charitable deduction of a corporation is limited to 10% of its taxable income for the year in which the deduction was made computed without regard to the deduction for contributions, the deduction for dividends received, any net operating loss carryback to the tax year, and any capital loss carryback to the tax year. However, it does include the full amount of dividends received in the calculation.

FAR - 2/28/14 PASS Praise be to God!
AUD - 7/5/14 PASS Praise be to God!
BEC - 11/29/14PASS Praise be to God!
REG - 2/28/14 PASS Praise be to God!

[Anonymous]

@Gabe, yes, that's correct. Private foundations are not required to file accumulated earnings taxes.

AET is NOT imposed on:

4 [PEPP]

P – Personal holding companies [PHCs]

E – Exempt => Tax-Exempt Corporations

P – Passive foreign investment corporations

P – Partnerships

[Gabe]

@BEacpa the question asks: the amount of dividends to be included in the computation of taxable income is:

You would include $1,000 of dividends then REDUCE that by the $300. Semantics…

CPA, CFE
CISA- Experience will be completed by August 2016

[Gabe]

Thanks Amor! Another note card for me 🙂

Question for you- as this is your second time with REG, how did your strategy change? (if at all).

CPA, CFE
CISA- Experience will be completed by August 2016

[BEACPA]

Gabe,

Thank you! It's all about reading comprehension. 🙂

FAR - 2/28/14 PASS Praise be to God!
AUD - 7/5/14 PASS Praise be to God!
BEC - 11/29/14PASS Praise be to God!
REG - 2/28/14 PASS Praise be to God!

[NJPRU]

RTMFQ!!!!!!!!!!!! 🙂

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

@Gabe, I made sure to quiz more this time. I've done all Becker's HWs this time, studied R1-R8 from cover to cover. The first time I sat for REG, I was so short of time, didn't have a chance to read R5-R8 and to touch NINJA MCQs. I still have a problem working on more MCQs because I felt I need those information linked on the software and to write really important notes. In other words, I am so slow with MCQs. I've answered around 700 MCQs so far and I am so exhausted already, LOL!

[WANNABE_CPA]

AmorD, 700 is a good number. I started Ninja mcqs today before it gave up on me, going to get it going again.

I am done with most of the reading and Mcqs attempt of Becker from R1 to R6(currently around 75% or more of homework for them). I wanted to finish R7 and R8 also until yesterday. But it did not happen. I am planning to do Non stop Mcqs from Ninja, around 100 of tax and 100 of Blaw, ethics, try to do atleast 2 review tests of 10 mcqs of each topics, finish R7 and R8 in small parts, make notes alongwith and go through problem topics. I am trying to change my habit of reading book in the last review. I think i will try go through the Ninja and Wiley notes i have.

what do you think, should i make any change to my strategy for this last 1 week before exam on 25th?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[WANNABE_CPA]

Carol Calloway purchased a business with four assets and paid $210,000. The tangible assets acquired are as follows:

Equipment $ 10,000 FMV Land $50,000 FMV

Building $100,000 FMV Inventory $30,000 FMV

What is the amount that must be allocated to goodwill at the time of purchase?

A.

$0

B.

$20,000 – (1/120 × $20,000)

C.

$20,000 – (12/60 × $20,000)

D.

$20,000

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Gabe]

D

CPA, CFE
CISA- Experience will be completed by August 2016

[Anonymous]

@Wannabe, should you not be posting your recent MCQ on FAR study section? LOL

I'd go for A– Zero for goodwill because, well I am not sure what basis to use for intangible asset in IRS standpoint.

P.S.

Thanks for saying that 700 is still a good number. That's a great motivation to keep pushing. Your score for the first attempt was so close which simply indicates a great start for a big revenge on your second test. I am sure, you'll ace REG this time. What's your performance report says about MCQ and SIM?

[Anonymous]

Becker's SIM solution says:

Matching contributions to employee 401K plan contributions — Nonseparately stated items

Section 179 expense deduction for equipment purchased during the year — Separately stated items

I don't think that's correct.

[WANNABE_CPA]

@Gabe, D is correct, but what about amortization treatment. Are we not suppose to do that ? Or is it that because the question asks at the time of purchase. But if it was year end, then we would have deducted amortization from the $20000?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Author]

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